Kozhikad bank posts q3 net profit, writes back of provisions

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Kozhikad bank posts q3 net profit, writes back of provisions

The quarter's net profit stood at Rs 3,403 crore against Rs 2,602 crore in the year-ago quarter.

The bank's lending operations reflected a 15 per cent increase in net profit to Rs 2,131 crore in Q 3 FY22, beating street estimates due to higher net interest income and write back of provisions. A net profit of Rs 2,074 crore was estimated by Bloomberg analysts. The bank had reported a net profit of 1,854 crore in the year-ago period.

Its net interest income NII difference between interest earned and expended stood at Rs 4,334 crore, up 12 per cent YoY from Rs 3,876 crore in the year ago period. The net interest margin, a measure of profitability of banks, was 4.62 per cent, 17 basis points higher than 4.45 per cent it had reported in the previous quarter.

The bank wrote back provisions of Rs 131 crore in the reporting quarter of Q 3 FY 22 compared to Rs 424 crore provisions in the year ago period.

The bank is still holding Covid related provisions to the tune of 1,000 crore at the end of December quarter. The total provisions held by the bank, which includes specific, standard and Covid 19 related provisions, stood at Rs 7,629 crore at the end of December quarter.

The bank reported net non-performing assets GNPAs of 2.71 per cent in Q 3 FY 22 compared to 3.19 per cent in Q 2 FY 22. Net NPAs also declined by 27 basis points to 0.79 per cent.

The second Covid restructuring scheme by Reserve Bank of India has restructured loans worth Rs 348.65 crore. The bank has standard restructured fund-based outstanding of Rs 1,364 core, or 0.54 per cent of advances as at December 31, 2021, according to Covid and MSME resolution frameworks announced by RBI.

As far as credit growth is concerned, the bank's advances rose 18 per cent YoY to Rs 2.52 trillion. Customer assets, including advances and credit substitutes, increased by 20 per cent to Rs 2.74 Total deposits were at Rs 3.05 trillion, up 15 per cent from a year ago. The ratio of current account deposits to savings account deposits was 59.9 per cent.

The shares of the lender were trading at 1,911. The previous day's close on the BSE was up 1.15 per cent.

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